The Myth of Efficient Markets

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Any Theory proposed has to follow the pattern below

• Is allowed to make some reasonable assumptions.
• Explain some phenomenon observed today (but is not understood) using the assumptions and theory proposed
• Uses the assumption and thoery to make some predictions

This is true about Theories in any discipline -- Physics, Astronomy, Finance, Psychology.. you name it.

The objective of the paper is to prove that the consequences explained as part of EMH is unrelated to the assumptions and the theory therof. It goes on to prove that "Mass Underperformance" is a plain statistical phenomena that is an outcome of the way we define "Underperformance".

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